Driving Regional Industrial Expansion through Innovation

Instead of marking a cyclical rebound, 2026 is significantly deemed a consolidation year, in which diversification-led development becomes more deeply ingrained in the area's financial design, reducing dependence on hydrocarbons and increasing strength to external shocks. Projections from major institutions broadly assemble on a more powerful GCC development profile in 2026 than in 2025, supported by durable domestic demand, continued non-oil growth, and (to differing degrees) a firmer hydrocarbon contribution.

ANSR July GCC PRs 50DR+

3.2 percent development in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output development projected to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive general conditions.

The IMF's World Economic Outlook (October 2025) jobs worldwide growth alleviating to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and developing economies just above 4 percent. On that contrast, a 4.44.5 percent GCC growth would place the region materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, enhancing the GCC's status as a fairly high-growth pocketprovided that local danger conditions remain contained and reform momentum holds.

Data from the GCC Statistical Center reveal that non-oil sectors already represent more than 73 percent of total GDP, a share that has continued to rise as governments broaden financial investment in services, infrastructure, and innovation. According to Oxford Economics, non-energy activity throughout the GCC is forecasted to grow by around 4.1 percent in 2026, supported by strong labor markets, enhancing credit conditions, and increasing financial investment in innovation and AI-related infrastructure.

ANSR July GCC PRs 50DR+

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Public-sector investment and reform remain central to sustaining this trend. Policy measures intended at attracting foreign direct investment, reducing foreign ownership rules, expanding capital markets, and supporting private-sector participation continue to underpin non-oil expansion and decrease the area's exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings are expected to play a helpful role in 2026.

Oxford Economics expects Brent crude prices to fall below USD 60 per barrel in early 2026, limiting the near-term contribution of oil extraction to GDP. However, oil supply is forecast to increase again in the 2nd half of the year, with a complete loosening up of remaining production caps most likely by mid-2027.

ANSR July GCC PRs 50DR+

Macroeconomic conditions throughout the GCC stay broadly encouraging of development. Inflation is anticipated to stay low, with the IMF forecasting average inflation of 2 percent across the region in 2026. Steady costs are helping preserve real family earnings and underpin customer spending, which Oxford Economics expects to grow by an average of 3.5 percent over 20262027.